24 September 2024 - Shenhua's coal-based PP and PE Auction Results
Key contracts for PP and LLDPE on the Dalian Commodity Exchange showed gains throughout the morning session, lending support to market sentiment on the Shenhua Auction Platform. However, the impact on purchasing interest for coal-based PP and PE cargoes has been mixed.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 24 September 2024. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2300 |
1600 |
7100 |
$892 |
7100-7510 |
$892-944 |
69.6% |
|
PPBC |
1221.7 |
238 |
7180 |
$903 |
7180-7810 |
$903-949 |
19.5% |
|
LLDPE |
900 |
899 |
7900 |
$993 |
7900-8080 |
$993-1016 |
99.9% |
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
|||||||
Key contracts for PP and LLDPE on the Dalian Commodity Exchange showed gains throughout the morning session, lending support to market sentiment on the Shenhua Auction Platform. However, the impact on purchasing interest for coal-based PP and PE cargoes has been mixed.
While LLDPE transactions approached full capacity, concerns surfaced over the pricing of PP block copolymer (PPBC), as dissatisfaction among Chinese bidders led to notably weak performance in the auction result.
In the meantime, purchasing activity for homo-PP remains sluggish, despite a price reduction of CNY 60/ton ($9/ton) from the previous day. The continued weak demand raises significant concerns about market sentiment, reflecting deeper buyer hesitation that could point to broader challenges within the market.
Background:
Shenhua Baotou Coal Chemical Co, the largest coal-based polyolefins producer in China, operates through four subsidiaries: Shenhua Xinjiang Coal-based New Materials Project, Shenhua Yulin Energy Co. Ltd., Shenhua Baotou Coal Chemical Co. Ltd., and Shenhua Ningxia Coal Industry Group (Ningmei).
The company boasts an annual production capacity of 2.65 million tons of PP, 750,000 tons of HDPE/LLDPE, and 570,000 tons of LDPE.
Active in spot trading, Shenhua Baotou also conducts daily auctions for its cargoes from 10 AM - 12 PM on its dedicated online platform, available at https://www.e-chnenergy.com.
Written by: Kat Yun Yun
Edited by: Rochelle Nguyen